Buying a P&C Book With Only an L&H License—Am I Crazy?

[DantzlerLJ]

Hello Community,
I have a question about buying a book of business. I'm planning to purchase a P&C agency in 2025, but right now I only hold an L&H license.

• Do I need a P&C license to purchase and hold a P&C book of business?

Feel free to roast me in the comments :-)

 

[rousemark]

Hello Community,
I have a question about buying a book of business. I'm planning to purchase a P&C agency in 2025, but right now I only hold an L&H license.

• Do I need a P&C license to purchase and hold a P&C book of business?

Feel free to roast me in the comments :-)

Only if you want the companies to pay you the commissions on the book of business.

 

[adjusterjack]

Hello Community,
I have a question about buying a book of business. I'm planning to purchase a P&C agency in 2025, but right now I only hold an L&H license.

• Do I need a P&C license to purchase and hold a P&C book of business?

Feel free to roast me in the comments :-)

That's a question best asked of your state's insurance licensing office.

 

[Allen Trent]

That's a question best asked of your state's insurance licensing office.

Most states dont require agency principals to be licensed if all the proper employees are PC licensed, but I think the Principal should. unlicensed people can receive commissions from policies, but that is different than collecting profit after revenue received & expenses paid from all agency operations.

IE--lots of Private Equity & investors own insurance agencies & IMOS & not all owners/investors of those companies are licensed

 

[Allen Trent]

Hello Community,
I have a question about buying a book of business. I'm planning to purchase a P&C agency in 2025, but right now I only hold an L&H license.

• Do I need a P&C license to purchase and hold a P&C book of business?

Feel free to roast me in the comments :-)

Likely yes, especially if you are buying a smallish agency that you will be an owner/operator.

But if you are just going to be money guy investor with some other licensed people managing the agency & licensed producers selling & licensed CSRs servicing, you may not need to hold a PC individual license. But you would definitely want to get your Agency entity licensed with the state & that would require that you list your licensed team members.

just get the license, otherwise you wont have a clue what your people are doing & you wont be able to talk to any consumers or current clients about coverages, quotes, etc

 

[DantzlerLJ]

Likely yes, especially if you are buying a smallish agency that you will be an owner/operator.

But if you are just going to be money guy investor with some other licensed people managing the agency & licensed producers selling & licensed CSRs servicing, you may not need to hold a PC individual license. But you would definitely want to get your Agency entity licensed with the state & that would require that you list your licensed team members.

just get the license, otherwise you wont have a clue what your people are doing & you wont be able to talk to any consumers or current clients about coverages, quotes, etc

Thank you for the insight! much appreciated

 

[marindependent]

Do I need a P&C license to purchase and hold a P&C book of business?

Have you investigated the requirements from the main insurer appointments from the selling agency? IE Progressive, Travelers, Farmers, etc?

Have you investigated getting E&O Insurance when the principal is unlicensed?

Are you not able to get P&C licensed? What would be the benefits of this?

 

[DantzlerLJ]

Have you investigated the requirements from the main insurer appointments from the selling agency? IE Progressive, Travelers, Farmers, etc?

Have you investigated getting E&O Insurance when the principal is unlicensed?

Are you not able to get P&C licensed? What would be the benefits of this?

I appreciate you mentioning P&C requirements. I'll check the carrier appointments from Progressive, Travelers, and Farmers, and get details on what they need.

I'll also look into E&O insurance. I've heard that having the principal unlicensed can complicate coverage, so I'll dig into that.

I'm considering getting my P&C license. It might simplify working with carriers and help me manage the book more directly. You've given me good angles to explore. Thanks.